H.R. 7797 — Toll Evasion Prevention and Plate Visibility Act of 2026

This section prohibits any person from selling, offering for sale, or facilitating the sale of goods designed or marketed to impair license plate readability; fraudulent, counterfeit, or altered license plates; unauthorized year-of-manufacture plates; or legitimate state-issued plates without state authorization, effective 90 days after enactment, with an exclusion for mere transportation in the ordinary course of business. Violations are treated as unfair or deceptive acts or practices under FTC rules (15 U.S.C. 57a(a)(1)(B)), enforceable by the FTC with full powers, penalties, privileges, and immunities of the FTC Act; the FTC may also promulgate implementing regulations under APA notice-and-comment procedures. (Thus, the prohibition leverages the FTC's existing authority over unfair/deceptive practices to address license plate obstruction products and plates used for evasion, such as toll avoidance.) This section further directs the FHWA Administrator, not later than 90 days after enactment and in consultation with industry, state agencies, tolling authorities, law enforcement, and others, to publish non-binding advisory guidance on license plate readability best practices (e.g., designs aiding digital imaging and frames/covers that impair readability), without requiring states to alter existing plate programs. This section requires FHWA, not later than 90 days after enactment, to establish a grant program for states, localities, law enforcement agencies or task forces, multi-state licensing organizations, and toll facility owners to fund (1) IT systems identifying repeat toll evaders, (2) law enforcement training on plate obstruction, (3) data-sharing among agencies and toll owners, and (4) other enforcement enhancements. This section authorizes $10 million annually for FY2027 through FY2030 to carry out these provisions.